Application of Data Science in Human Resources

Due to the advancement in Data Science, the HR sector in almost every prominent company in the world is starting to embrace scientific and statistical ways of running their operations. Previously Human Resource departments majorly relied on manual ways of simple surveys and a plethora of psychological reviews. These methods resulted in either biasness from the relevant officer or these surveys didn’t result in major impact which the relevant stakeholders were looking into from these activities. However, the application of new big data-driven techniques is beginning to bring valuable benchmarks and providing important insights into the historical data.

Previously, HR professionals in almost every organization had a hard time analyzing the behavior of employees in the organization and there wasn’t any tool for them to gauge employee readiness to remain in a company in a particular term or their long-term satisfaction. But now Data scientists can not only analyze and interpret relevant trends and insights in the Data relevant to the HR department but it can also help the relevant professionals and stakeholders in fine-tuning their policies for not only selection of the best candidates, but can also help in retaining them as well.

Although there are different applications of Data Science into the domain of Human Resource, there are some which apply to the majority of organizations:

  • Getting Insights into prospect candidate:

Just imagine getting relevant insights into hundreds of candidate’s profiles by collecting, processing, and sharing information about candidate’s skills and experience just to know about them. Luckily, by the application of relevant tools and algorithms of Data Science, one can not only extract social media accounts of every candidate for getting insights regarding professionalism and preference of a selected candidate, but it can also be very beneficial for extracting patterns from the data as well.

Forecasting Future Investments:

Performance analysis from the result of key decisions being taken by the stakeholders plays an important part in a company’s progress towards its vision. With data science, HR professionals can extract useful patterns, such as the number of necessary investments in finding and hiring specialists, investments in the training of new employees, and most importantly, cost per hire.

  • Workforce Analytics and Planning:

With an accurate analysis of the corporate workforce, data science allows HR management representatives to better understand the needs of their company and effectively monitor key metrics. 

  • Talent Analytics:

According to the 2017 Global Human Capital Trends Report published by Deloitte, 90% of HR specialists want to reform their whole organizational model. This includes leadership, management processes, enhancing opportunities for building good carriers for candidates, and jobs.

This report gives further emphasis to Data Science on Human Resource department as it helps to wisely structure convenient talents, improve existing training programs, evaluate turnover, and perfect recruitment strategies to ensure a high level of employee retention. 

 A study conducted by MIT and IBM showed that those companies that implemented the predictive analysis in their HR departments achieved positive results within their business. These organizations had the following achievements:

· 8% increase in their sales;

· 24% increase in the operating income;

· 58% increase in the number of sales per employee.

Therefore, deploying data science for HR decision management seems to be a highly effective measure for any company that leverages a large workforce. 


Data Science is a fundamental method of analyzing the cost-effectiveness of different ventures related to the Human Resources department of an organization. Additionally, it can not only help to analyze the plethora of candidates for a single position within and outside of the organization, but it can also help in making the right decisions as well.



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